Trump v Clinton gamble hurts Paddy Power Betfair profits

The group paid out on both candidates...

BY Joseph Conroy 09:56 Monday 23 January 2017, 9:56 23 Jan 2017

Gerry Broome AP/Press Association Images

Preliminary results from Paddy Power Betfair show that the combined betting group brought in €1.79bn in revenue in 12 months to the start of December last year - that's a 18% increase year-on-year.

It expects the group's underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be close to the mid-point of its previously guided range of between £390m (€453m) and £405m (€470m).

The firm notes that this is, "notwithstanding worse than expected gross win margins in November and December."

Paddy Power lost big on the US presidential election - it faced a €4.1m pay-out on winning Trump bets after it already paid €880,000 to Clinton backers. At the time the company called him, "the biggest political liability" in the history of gambling.

All major bookies have noted that football and racing results went against them over the festive period. The Irish firm notes that the total cost of 'customer friendly results' was approximately £40m (€46m) in the quarter - before "any benefit from the re-cycling of winnings."

The group experienced a fall in revenue in its online division as both adverse results and "some weakness in gaming" contributed to a 3% fall.

Paddy Power Betfair notes that his Australian business was particularly strong and helped to off-set tightening margins in Europe.


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